RE:Response to Finallytherock's AGM Worries But, the context in which Bioasis seems to be using "liquidity event" in the AGM presentation is that it's a business deal that brings in sufficient money to make the company financially liquid, a far different and more positive meaning. I look at it this “liquidity event” in a couple of ways:
1/ Why not put your $1m house up for sale and see is someone will offer you $3m. Maybe the buyer wants to build a condo on your property (if they can also purchase the adjoining properties) or know that a new development is coming in nearby and house prices will rise, whatever the reason, gauge what interest there is in buying your property. You won’t know until you put the “for sale” out as why would anyone think your house is for sale unless you do so?
Trust me, this is not a sign of desperation saying that you are open to offers. In fact, if Bioasis has already had offers then it is smart to not announce them but hire a well-respected company like LT to manage the process. If someone makes an offer to buy your house your next step is to hire a realtor and/or lawyer so think of LT being hired for that reason under this scenario.
Has anyone thought about that angle? We the shareholders determine what the company will be sold for if we agree to it being sold in the first place.
2/ In fact it maybe was never your intention to sell anyways (only if someone gave you an offer you couldn’t refuse) but now that you have stated the house (company) might be for sale you get a lot of people knocking on your door to see inside. Smart move to get more parties talking to them that might not have done so before. Granted this being the scenario taking place is low but I put it out there anyways.
3/ Getting bought or merging with another company that has deep pockets and access to more resources will allow Bioasis to get their many programs (remember JD’s post about them having at least 23 different programs if they wanted) into the clinic faster. That’s what we all want right as we know the market cap of clinical biotechs is substantially more than pre-clinical.
I understand how easy it is to be negative about everything. In my opinion, it is truly going to take a substantial bit of news to cause shareholders to be confident. Yesterday's AGM contained many positive elements, but the LT reference and "strategic alternatives" were sufficiently awkward to cause concern. Not for a smart investor who has seen numerous buyouts and M&A activity transacted by LT. They are a very well-known and respected firm, one level below Goldman Sachs, JP Morgan, Morgan Stanley.
They would not be taking us on as a client if they didn’t see major potential (bonus/commission) for themselves.
So you all have a choice. You have to figure out whether Bioasis is moving ahead or into the ditch. What I heard and saw is a description of potential success on many fronts with help being brought in to deal with it. If you want to go south then that's your business. For my part, I'm excited. I saw the AGM as extremely positive for 2 main reasons:
- Mario Saltarelli is now the Chief Medical Officer (CMO) at Bioasis.
Mario is on the Board of several companies, is well respected in the Pharma world and has numerous requests for his attention and time. There is only 24 hours in a day so for him to assume the added responsibilities and time commitments for this new role speaks volumes about what he thinks is the potential for Bioasis. If he is devoting more time to it – there is a reason. He can work pretty much anywhere he wants yet he has decided his precious time is going to be spent more with Bioasis now. Big statement to make.
- They’ve hired a premier investment banker to manage the offer(s) already made to the company and/or to look for buyers or merger partners that will provide a path for Bioasis to get its many programs into the clinic much quicker.